QUESTION
Am I obligated to pay this difference?
Asked on Aug 21st, 2013 on Personal Injury - California
More details to this question:
I am being sued by people who purchased a home from me. My insurance company is offering them a settlement. Insurance says, if the people do not accept the settlement, the company will "look to me" to make up the difference. Is this even legal? Am I obligated to pay this "difference?" The only obligation I can possibly see is that I might be responsible (somehow) for my deductible. Thank you for your input.
7 ANSWERS
Chapter 7 Bankruptcy Attorney serving Syracuse, NY
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Andrew T. Velonis, P.C.
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I would have to see both the policy and the letter you are referring to in order to give you an answer. I don't blame you for wanting to save a buck, but if there is money at stake, it is worth your while to pay a consultation fee and get sound advice.
Answered on Sep 12th, 2013 at 4:16 PM
You need to read your insurance policy and contact your state department of insurance. In automobile insurance incidents, the insurance company if obligated to pay up to the maximum of your policy coverage. If there is a verdict for more that that limit, then you are liable for it to the plaintiff, but not to your insurance carrier. I do not think that your deductible plays any role because that is only effective when you are making a claim yourself. The insurance carrier has to try to settle the case within policy limits, but obviously does not have to spend more to settle than the maximum of your limits.
Answered on Sep 12th, 2013 at 4:15 PM
Ronald A. Steinberg
I am guessing as to the claim, because you neglected to give enough information. In general, insurance policies are called "indemnity policies." That means that the insurance company will defend you, and will pay the plaintiff who sues you up to the limits of the policy; you are responsible for any amounts over the policy limits. An Umbrella Policy is a smart investment. It will pick up any damages over some specific amount, usually $300,000 or so.
Answered on Sep 12th, 2013 at 4:15 PM
Criminal Defense Attorney serving Anderson, SC
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The David F. Stoddard Law Firm
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Liability Insurers insure you against the risk of your personal liability for certain hazards. For example, if you run a red light and hit someone's car, you are liable for any damage you caused. Your auto liability insurance will pay the damage up to the policy limits. Thus, if you have $25,000.00 worth of coverage, but cause damages of $50,000.00, you would be liable for the amount above your insurance coverage. You did not tell me what you have been sued for, the policy limits, etc., but, yes, it does sound legal.
Answered on Sep 12th, 2013 at 4:15 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Without any facts of why the insurance company is paying something, I cannot tell you. I think you need to take the policy and any pertinent documents to an attorney and go through it with him or her.
Answered on Sep 12th, 2013 at 4:15 PM
Employment Law Attorney serving Beverly Hills, CA
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Dordick Law Corporation
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It would be helpful to know why you are being sued. If the amount won is in excess of the policy limits, you can be held liable for that excess. Insurance companies also do not pay for intentional wrongs, only negligence.
Answered on Sep 12th, 2013 at 4:15 PM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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Would be helpful if you would say what it is the suit is about. If it is fraud, that is important to know. Insurance pays up to its limit. If the dude who sues you is entitled to more than the coverage who do you think has to pay the more?
Answered on Sep 12th, 2013 at 4:15 PM